An Illinois company says it has entered into a definitive agreement to acquire “substantially all of the assets” of Sacramento Container Corp. and its related operations in a $265 million deal.
Under terms of the transaction, Lake Forest, Illinois-based Packaging Corporation of America said it will acquire Sacramento Container’s full line of corrugated products and sheet feeder operations at McClellan and in the Fresno County community of Kingsburg.
SCC was founded in 1992 as an independent corrugated packaging manufacturer. Its website says it employs more than 225. The company says its local warehouse has 340,000 square feet, and the Kingsburg warehouse’s capacity is 375,000 square feet.
PCA, with around 14,000 employees, bills itself as the nation’s fourth-largest producer of container board and corrugated packaging products. The company operates eight mills and 93 corrugated products plants and related facilities.
The agreement is subject to certain customary conditions and regulatory approvals. PCA expects the deal to be finalized early in this year’s fourth quarter.
PCA said it plans to finance the transaction with available cash on hand.